How to Achieve Execution Excellence

Balanced Scorecard

What’s the best way to drive individual performance?

How does a leader assure enterprise success?

Is it possible to close performance gaps to improve execution?

 

Making Strategy Work

In Execution Excellence: Making Strategy Work Using the Balanced Scorecard  Sanjiv Anand answers these and other questions.

Sanjiv Anand has 30 years of global experience in consulting, helping CEOs and boards develop transformational strategies. Currently the Chairman of Cedar Management Consulting International, his book is full of his operational and strategic insight on how to manage human capital. He is an expert on the Balanced Scorecard.

I recently asked Sanjiv to share some of his experience about what does and doesn’t work in implementing strategy.

 

“If you can’t execute the strategy, it’s not worth having.” –Sanjiv Anand

 

Why is strategy more relevant than ever before?

While the world continues to provide opportunities to grow, it is not without challenges. First, customer expectations around product, relationship, and brand have risen over years driven by extremely high levels of competitiveness. This has resulted in the need for firms to develop multiple strategies that address different customer segments. Additionally, competition is now local, regional, national, and global. This requires a more nuanced and complex competitive strategy. All of this also drives complexity in process and people. Global organizations or markets require processes to work well in a centralized and decentralized manner. Lastly organizations have become complex as even medium-sized enterprises can have employees across the world. All of this has made strategy, and more importantly the execution of strategy, more relevant than ever before.

 

“Strategy is about execution.” –Sanjiv Anand

 

What are the elements of a strategy that works?

Never build a strategy that can’t be executed. The problem starts there. Most organizations build strategies that are complex, difficult to understand, and hard to execute. A strategy that works needs to be balanced. It needs to focus on the drivers of financial performance rather than just the financial outcome. People and technology help drive process excellence. Process excellence helps meet or exceed customer expectations. And meeting customer expectations delivers financial performance. Therefore, all of these elements are critical for strategy that works—combined with a clear sense of ownership across the leadership team, a set of performance measures that are lead indicators to performance, and a set of targets that focus performance and don’t overwhelm. Focus, balance, ownership, measurement, and the right targets are the elements that make strategy work.

 

“Parallel processing is key to a successful strategy.” –Sanjiv Anand

 

Understand Cultural Differences

What are the cultural differences to be aware of in terms of measurement?

Execution Excellence by Sanjiv AnandIn the U.S., measurement motivates. In many parts of the world, measurement scares. Why? The U.S. has a culture that celebrates individual performance. This is also reflected in how organizations assess and reward people. Drive individual performance to drive enterprise performance is the typical formula; therefore, most executives in U.S. corporations are used to the idea of being measured and being held accountable individually.

Many parts of the world are different. In Japan it’s about team performance, and therefore team measurement is more important. In many parts of Asia, especially India, measurement is generally not part of the culture. Individual performance, or rather lack of it, is not something for public display or discussion. In Europe, the role of the corporation transcends the objective of only meeting shareholder expectations to also focusing on the greater good of society, so measurement of individual performance gets more complicated.

The broader point here is not to suggest that measurement should not be attempted, but the approach to measurement needs to be customized to motivate, not demotivate’ which is the objective in the first place.

 

“A positive strategy should focus on innovation.” –Sanjiv Anand

 

Don’t Make these Mistakes In Setting Targets

Is a Talent Assessment Missing From Your Strategy?

Talent Assessment
This is a guest post by friend and mentor Bruce Rhoades, who retired after having run several companies. He often helps me with strategy. I am delighted that he is a regular contributor.

 

Does your organization possess the skills necessary to successfully implement your strategic plan?

 

Strategic Planning Is Not Enough

Organizations invest a lot of time, talent and money in a strategic planning process. They carefully consider market segments, opportunities, trends and competition. Then they develop strategic initiatives and projects. They examine assets, products, pricing, costs, headcount, revenue projections and develop detailed 3 -5 year projections. Sometimes shareholder value and market value models are created.

 

“One often-overlooked aspect of a talent assessment is leadership.” –Bruce Rhoades

 

I have spent considerable time with organizations on strategy, planning and process as strategy officer, as interim CEO for several companies and as a consultant. I am surprised how often the entire process misses a key element of strategy:  a strategic talent assessment.

If the organization does not actually possess the key skills to execute the strategy, what skills are needed and how can they be obtained? No matter what process is used for strategy development, a strategic talent assessment is needed before “dropping the flag” on execution.

 

“A strategic talent assessment examines the skills needed to execute.” –Bruce Rhoades

 

What is a Talent Assessment?

Simply stated, a strategic talent assessment examines the organizational skills needed to execute the strategy. It should include:

  • Necessary skills to assess the market needs, attractiveness, competition and size
  • The know-how to define, plan and price the product
  • Type of talent to actually develop the product
  • Competence needed to market, sell and deliver the product
  • Skills to provide customer readiness and adoption
  • Expertise needed to provide service to customers for products
  • Leadership talent to actually execute and deliver the strategic initiative
  • Certain cultural elements of the organization: decisiveness, accountability, delegation, results, etc.

 

“If the necessary talent is not present, the strategy is flawed.” –Bruce Rhoades

 

Performing a Talent Assessment

Ideally, the assessment should be performed when key strategic initiatives are identified. It is especially important to assure that the talent is available to assess the market and opportunity at the next level of detail before committing major resources.

The assessment should be performed at a sufficient level of detail to enable successful execution. Avoid a tendency to categorize talent at high, abstract levels. A good test for the level of detail is to imagine that you are trying to hire a person with these skills — how would you identify that the person possesses the skills? For example, do not just indicate “technology skills” but specify the exact technology skills. Likewise, do not indicate “sales” but what type of sales skills – consumer, consultative, B2B, etc.

One often-overlooked aspect of a talent assessment is leadership. Even if all the necessary talent resides in the organization, execution will fail if leadership is absent. We have all seen a sports team with an abundance of individual talent but with no leadership to get the talented individuals to perform and deliver as a team.

 

“Even if the necessary talent is present, execution fails without leadership.” –Bruce Rhoades

 

The result of the talent assessment should be a “skills gap” matrix that lists the skills currently resident in the organization and the skills needed to execute the strategy. They can even be ranked critical, important, necessary, etc. The “skills gap” matrix should be used as a guide to acquire the necessary talent.

One gap that often occurs in current strategies is when organizations want to utilize “big data analytics” in products, marketing or sales but actually have no resident skills in analytics, statistics, large database technology or modeling.

Another example is when organizations want to capitalize on “social media” but have scarce skills in the organization that actually understand how to best use social media to reach their goals.

 

“Execution before the proper skills are in place can waste resources and damage credibility.” –Bruce Rhoades 

 

How to Remedy the Strategic Talent Gap

Make A Decision To Win

Fast Forward Winner

He’s an Emmy Award winning broadcaster, a motivational speaker, and the author of Fast Forward Winner. He’s also the voice of the Atlanta Hawks. His whole professional life has been spent watching teams compete.

Who better than to ask about winning teams, about team leadership, and about winning?

 

“Every day your work is your performance review.” –Bob Rathbun

 

Bob Rathbun started broadcasting at 12. His first opportunity at the microphone started with him calling a homerun at the bottom of the seventh inning. Since that first call, Bob has crisscrossed the country, won numerous awards, and risen to the top of his profession.

And yet he humbly says that, if he could do it, you can, too. Bob wants everyone from corporate leaders to the youth groups he encourages to learn from his journey and find success.

 

“Make the decision to be at your best so you can give those around you your best.” –Bob Rathbun

 

Go For Your Dreams

In his book, Fast Forward Winner, and in his public appearances, Bob is always encouraging others to go for their dreams.

“It’s ok to dream. Ok to put yourself out there and see where it can take you.”

If you don’t dream about it, think about it, put yourself out there and ask some people for help, you never know what may be out there for you.

What’s the #1 lesson for those aspiring to go to the top? Bob’s answer: Belief.

How many of us give up because we don’t believe in ourselves enough?

 

“When you make a decision, be ready for what comes with it.” –Bob Rathbun

 

Formula for a Winning Team

Bob has seen teams fall apart and seen teams win championship games. His formula for success is:

Talent + Lockstep Thought, Spirit, and Execution

How to Lead Like a Navy SEAL

How to Lead Like a Navy SEAL

Navy SEAL

When you read those two words, what comes to mind?

Words like: tough, decisive, driven, fearless, disciplined?

What can leaders learn from the SEALS?

 

Under incredible conditions, Navy SEALS prove their worth by getting the job done. When I meet a SEAL, I am intrigued because I know this is someone who is proven. Recently, when I had the opportunity to interview Brian “Iron Ed” Hiner, about his new book, First, Fast, Fearless: How to Lead Like a Navy SEAL, I knew I would walk away with many lessons I could apply in business and in life.

 

“When leadership is right, you really don’t see it any more.” -Ed Hiner

 

HIRING LESSONS FROM THE SEALS

Becoming a NAVY SEAL means you have overcome all odds. What can corporate leaders learn from the selection process in terms of hiring and recruiting the very best team possible?

Navy Seal Ed HinerWe have identified four major traits that we look for in a perspective SEAL candidate: physical courage, moral courage, problem solving, and what I call “teamability.” Physical courage is obvious, but moral courage does not rank far behind because we are an organization that relies heavily on trust and for our people to do the right thing for our country.

We also want SEALs to be problem solvers who thrive in what we call VUCA (Volatility, Uncertainty, Complexity and Ambiguity), an environment often referred to as the “fog of war.” In our Gallop polling, we discovered that chess players are almost four times more likely than non-chess players to successfully make it through Navy SEAL training; chess players are problem solvers, and the board is VUCA writ small.

The last trait that I call “teamability” is a person’s ability to lead and be led, who can move from team to team seamlessly.

 

The 4 Must-Have Traits of a SEAL

1: Physical courage.

2: Moral courage.

3: Problem solving.

4: Teamability.

 

The takeaway of this is that hiring and recruiting needs be very deliberate. Organizations that understand the critical traits they need in their employees, and actively recruit for these traits, will be more successful down the road. Obviously all organizations look for skills and experience, but oftentimes they overlook the fundamental traits they actually need to be the elite organization that they wish to be.

 

“Leadership is something you do with people, not to them.” -Ed Hiner

 

PUT MISSION BEFORE SELF

Could you cover teamability a little more and what that means? What methods do you employ to get people to put “mission before me.”

Teamability requires that leaders and team members put mission and team before their own personal interests. When people know that leaders are selflessly making decisions for the team to succeed, and protecting their people along the way, it sets the conditions for teamability. From the beginning of SEALs training we set conditions to reinforce this concept.

In some ways it’s like we turn the pyramid upside down and take care of the broader team mission first and work our way down to the individual. For example, after we finish a mission, we take care of the teams’ common gear first. Then we all split off to our smaller teams and take care of that gear and issues until we get to the individual. This applies to everyone on the team, rank doesn’t matter; the motto is mission before me. This applies everywhere in the SEAL Teams. During staff meetings SEAL Team issues get addressed first, then the smaller Task Unit issues and so forth. It’s a practiced ritual that develops teamability and mission focus. As for the leaders of team, the rank of importance is the Mission, the men and then me. When it’s time to shower and eat, leaders eat last.

When organizations depend on teamwork it’s critical for them to reward the teams that exhibit this trait. In the SEAL Teams your performance review is heavily skewed toward your teamability; we don’t just give it lip service. We reward the traits that we want, to be the elite organization that we need to be. It’s very easy to fall into the trap of just rewarding individual performance at the expense of critical traits that you need for overall mission success.

 

“Servant leadership means that the team is not about you.” -Ed Hiner

 

THE IMPORTANCE OF HUMILITY

You say, “The biggest enemy of humility is our own ego, which is molded by our fears.” Talk about that interplay between fear and ego.IMG_0089

We are an organization of “Alpha males” and high performers, and it’s easy for individuals in any organization with high performers to fall in love with their own ideas and abilities. Elite teams perform at their best when their leaders are humble. It’s an outward indicator that the leader is willing not to fall in love with his or her own ideas but is instead willing to find the best direction for the mission and the team. When leaders are humble and act selflessly it builds trust, and trust is the invisible thread that holds all elite teams together. When this invisible thread is broken and leaders act in their own self-interest, and don’t engage the skills and talents of the team, results will suffer.

We all have fears, and those fears can contribute to shaping our personalities: fear of failure, not being intelligent, shame, etc. Humility is the antidote to those fears. Elite leaders are not worried about being right; they are focused on the cause-and-effect relationship to get results and accomplish the mission.

I’m not saying that people should completely get rid of their egos so that they dance naked in the halls; I’m saying divorce your ego, yet stay friends. Don’t let your ego run your life. As the saying goes, “Humble people don’t think less of themselves, they think of themselves less.”

 

“Be the cause, not the effect.” -Ed Hiner

 

What qualities do you first notice when someone is leading with humility and acting as a servant leader?

7 Disciplines of A Leader

Positive reinforcement word Discipline engrained in a rock

How to Help Your People, Team, and Organization Achieve

In the Seven Disciplines of a Leader, Jeff Wolf explores what leadership looks like when done right. Jeff has coached hundreds of leaders and offers his disciplines in order to benefit leaders at all levels of the organization.  I recently talked with Jeff about the leadership disciplines discussed in his book.

 

“Companies place the wrong leadership in the job 82 percent of the time.” –Forbes

 

How to Get Noticed

What advice do you give to someone who wants to stand out and get noticed as a leader in a large organization?

Learn what your company looks for in its leaders. See if there’s a competency model that identifies successful leaders’ strengths and characteristics. Study this model and be sure to practice the competencies. If no such model exists, seek out successful company leaders and talk with them to gain a better understanding of how they became successful.

You should also volunteer to lead small projects, which will provide useful leadership experiences and exposure. You’ll gain confidence and enhance the skill sets that are weak.

Always be curious. Seek new opportunities and experiences, and always be open to trying something out of your normal comfort zone.

I would encourage budding and aspiring leaders to create a plan, put it in writing, and then “work it.” Research proves that people who put their goals in writing are usually more successful.

Read as many books and attend as many training courses as possible, both within and outside of the company. Vary courses so you can experience a broad spectrum of leadership skills.

 

“A leader’s upbeat attitude is contagious and lifts morale.” -Jeff Wolf

 

There’s another important challenge to overcome: Learn the areas in which you must improve because we all have blind spots. We see some of our weaknesses, but it’s truly impossible to identify all of them.

It’s important for leaders to be positive and have a great attitude because they can either impart or sap energy. A leader’s upbeat attitude becomes contagious, lifting the morale of those around them. You can always teach skills, but you cannot always teach people how to be positive; they either have a great attitude or they don’t.

Be sure you are striving to work well with others and be aware how other people view you. When you stand up to speak in front of a group, do you exude confidence, present articulate, clear messages, and carry yourself well?

 

Coaching for Success

What is the most common reason someone calls you for coaching?

Coaching used to be thought of as a tool to help correct underperformance or, as I often call it, the “broken wing theory.” Today, coaching is used to support leaders, employees with high potential, and top producers in an effort to enhance individual capabilities.

We work in such a high-speed environment! Organizations are finally beginning to recognize the importance of helping leaders achieve critical business objectives in the shortest possible time, so they’re hiring me to speed personnel development.

I’m often brought into organizations to deal with a number of leadership issues. Providing feedback is one key area. As leaders move into greater levels of responsibility, they receive less—perhaps even no—feedback from others on their performance. The unfortunate consequence is stagnation. Critical leadership and interpersonal skills often reach certain levels, and the leader is given no opportunity to become an even better leader. Working one-on-one with an objective third-party coach offers these leaders a trusted advisor who can focus on behavioral changes that organizations are ill equipped to handle. Coaching develops extraordinary leaders. Extraordinary leaders produce extraordinary business results.

 

Have a Quick Impact as a New Leader

If you are a new manager, what are a few ways to have a quick impact?

Leadership is not rocket science. It comes down to living and leading by the golden rule: Do unto others as you want them to do unto you.1119003954

People make companies. As leaders, we often spend most of our time on strategy and improving bottom-line results, but what about our people? It’s our job, as leaders, to guide them, help them develop more skills, and increase productivity.

I think Walt Disney put it perfectly: “You can dream, create and design the most wonderful place in the world….but it takes people to make the dream a reality.”

For a quick impact, work to understand what your people want, not just what you want, and act accordingly. Ask your staff for their feedback with questions such as:

  • What can I do to make you happier here?
  • What do you find challenging about your work?
  • What’s energizing about your work?
  • How can I be a better leader for you to be successful?
  • What resources do you need that you currently don’t have?
  • What motivates you to work hard?
  • Do you feel appreciated and receive the praise and recognition you feel you deserve?

Often times a new leader’s first inclination is to become too friendly with people. After all, everyone wants to be liked. But by trying to become everyone’s friend, leaders run the risk of losing respect and influence. If your staff considers you to be one of the group, they may not respect your judgment on important issues.

Additionally, they may lose their motivation to achieve goals, fail to work hard, and assume deadlines are soft when they believe their “friend” will never reprimand them. That’s why leaders must avoid falling into the trap of becoming too friendly with their staff. The bottom line? You’re the boss—not a best friend! You cannot be objective and unbiased when staff members view you as a work pal.

 

“It takes people to make the dream a reality.” –Walt Disney

 

A Guide to Hiring Right